Lendlease Global Commercial REIT has reported a distribution per unit of 2.25 cents for 2HFY2023 ended June, down 8.2% y-o-y from 2HFY2022's 2.45 cents, no thanks to higher borrowing costs. This brings the full-year DPU to 4.7 cents, down 3.2% over FY2022.
Net property income for whole of FY2023 was up 2 times to $153.9 million, while gross revenue was up similarly to $204.9 million, thanks to contribution from newly acquired interests in Jem as well as higher rental reversion.
LREIT’s portfolio committed occupancy remained high at 99.9% with a long weighted average lease expiry of 8.2 years by net lettable area and 5.5 years by gross rental income.
Lease expiring profile remained well-spread with only 5.2% by NLA and 10.6% by GRI due for renewal in FY2024.
As at June 30 2023, LREIT’s portfolio was valued at $3.65 billion, up 1.4% y-o-y, thanks to higher market rents and improved market sentiments in Singapore’s retail sector.
"Moving forward, we will continue to leverage on our operational capabilities to safeguard LREIT’s business and create value for its unitholders, while adopting a cautious approach amidst the ongoing uncertainties in the global economy and the interest rate environment," says Kelvin Chow, CEO of the REIT's manager.
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LREIT closed Aug 7 at 67 cents, unchanged for the day and down 5.63% year to date.
